Is Discover Really Worth Getting?

I have wondered about this for awhile and I wanted to get a consensus. Is it even worth having a Discover card? A lot of places don't accept it so why even bother having one. Are there special perks that it provides that other credit card companies don't offer? I just don't get it.

I think the thing people like about Discover cards is the great customer service. It ranks on par with American Express on that front - but it is thought to be easier to get accepted for a Discover card.

Also, people who like to use several cards enjoy the Discover it card. They get 5% bonus rewards in rotating categories each quarter, usually in popular categories. For example, the bonus categories for 2016 are:

January - March 2016: Gas and Ground Transportation

April - June 2016: Restaurants & Movies

July - September 2016: Home Improvement & Amazon.com

October - December 2016: Amazon.com & More

But, there are two catches to this. First, you need to sign up each quarter to get the 5% rewards level. And the bonus rewards are only good on your first $1,500 of spending in the category. After that, you are back to the 1% level.

Now, Discover is offering a promotion for new customers: they will double your cash back for your first year. That means 10% back in the bonus categories, and 2% back on everything else.

Alternative, you may want to consider the Discover it Miles card. It offers a flat 1.5% back on all spending (also doubled your first year!). And you miles can be redeemed as a statement credit against travel or as cash back. Since the it Miles card will also double your first year spending, that is a flat 3% back on everything.

Discover cards have no annual fee. So maybe you will want to apply and add to your arsenal.

But, my feeling is that you will do better over the long haul combining a straight 1.5% or 2% cash back card with a bonus category card with fewer limitations (such as the Blue Cash cards from Amex). And I think a lot of people realize this, which is why I am seeing more Discover it commercials than Discover it cards out in the wild.